Tuesday, February 16, 2010

Debt is not just numbers on a piece of paper

Debt is more like a bunch of numbers on a bunch of pieces of paper.

We know this $100 bill sometimes and sometimes even that is asking a lot.

We rarely if ever see this one, and usually we see it for minutes only while the lender hands it to the seller for whatever you needed a loan for. Sadly this is only a $10k stack as well; easy to carry, years to pay off.

This tiny, tiny stack is what ONE MILLION DOLLARS looks like in those $10k stacks shown above. You probably will not see that in your lifetime, unless you never spend any money on even basic survival.

This is $100 Million and it looks like it. This would easily fit into your garage and keep you able to stay home, eat cheetos, watch pornos, and buy pretty much anything you would ever like. Doubtful you will ever see this in your lifetime or two lifetimes.

Here is one billion dollars and to the Federal Government, that is not a lot of money if you go only by the way the way they spend it. Sadly, part of it is, or was, yours and they gave trucks full of these to the banks that continue to deny you loans, charge fees for PAYING THEM BACK, and collect interest on the whole process. This money was supposed to help us as Amercians. I don't feel helped, do you?

This is the ONE TRILLION quantity. It takes double stacked pallets to accomplish this representation. The standard size for a pallet is 48x45. In a 53 foot truck you can fit 26 pallets in total, 13 on each side. double stacked that's 52 per truck; Imagine physically moving that cash.

Let that sink in, in the wake of this Jan 30th 2010 news:

A quarterly report to Congress on the $700 BILLION Troubled Asset Relief Program, or TARP, made available in draft form late on Saturday, said financial firms seen as too big to fail before 2008 have only grown larger as they feasted on subsidies from the bailout program. TARP was supposed to encourage banks to increase financing for U.S. businesses and consumers, lending is actually decreasing on a month-by-month basis.

•The Federal Reserve has committed $5.5 trillion and spent $2.1 trillion. These amounts relate to various initiatives aimed at the mortgage crisis and credit freeze, including the Citigroup bailout and the shotgun marriage of JPMorgan and Bear Stearns.

•The FDIC has committed $1.5 trillion and spent $149 billion to guarantee Citigroup assets, interbank loans, and prop up GE Capital.

•The Treasury has committed $1.1 trillion and spent $597 billion, not including the automaker bailout that will get tapped by GM before year-end. The Treasury's programs include the Troubled Asset Relief Program, tax rebate checks of 2008, tax breaks for banks, and a program to stabilize foreign currency exchange rates.

•The FHA has committed and tapped $300 billion to ramp up the Hope for Homeowners program. Hope for Homeowners. The $300 billion initiative is expected to avert fewer than 14,000 foreclosures in its first year. At that rate, it seems doubtful that the resulting equity share arrangements could cumulatively cover the cost of the program-let alone heal the mortgage crisis.

Assuming an estimated U.S population of 305 million, you can measure your share by the committed and spent amounts to date. Your share of each is $28,000 and $10,000, respectively.

Considering how thoughful the banks have been to you and the BONUSES the execs have got, you should work harder to pay YOUR SHARE of that $28k...don't you think?

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